Beleaguered Samsung’s future depends more on components than on copying Apple

“While smartphone sales are sliding, Samsung’s chip business is powering its bottom line,” Robyn Mak writes for Reuters. “Future growth may depend more on components than on competing with the iPhone.”

“Still the world’s largest handset maker [by volume, not profit; not by a long shot – MDN Ed.], it is struggling for growth,” Mak writes. “Yet the high-margin semiconductor business is more than making up for the shortfall. Selling memory chips to rivals – including Apple – is likely to boost operating profit at the semiconductor division to 13.6 trillion won ($11.7 billion) this year, more than half the company’s total, estimate analysts at Maybank Kim Eng.”

Mak writes, “When it comes to judging Samsung’s future performance, Intel may be better benchmark than Apple.”

Read more in the full article here.

MacDailyNews Take: Go TSMC and GlobalFoundries, go!

Beleaguered Samsung finding it tough to compete Apple’s revolutionary iPhone – October 6, 2015
TSMC set to oust Samsung for future Apple chip fabrication – September 28, 2015
Judge Lucy Koh orders Samsung to pay Apple $548 million for patent infringement – September 22, 2015
Apple’s iPhone owns 92% of smartphone industry’s profitsApple’s iPhone owns 92% of smartphone industry’s profits – July 13, 2015


  1. Lessons learned one hopes, what Samsung did was truly criminal. Samsungs partner in crime was fellow American Google without whose help Samsung would have had no hopes of competing with Apple. Shame on Google & Samsung

  2. Apple is buying such vast quantities of chips for it’s iPhones that Samsung’s 30-40% share of that market is given as the reason why it’s component division’s profits have jumped by 80%.

    Despite that, analysts insist that Apple’s sales are somewhat disappointing and AAPL takes a dive.

    Samsung are celebrating because they are making decent profits again, but they seem to overlook exactly which phones are making profits for them.

    It’s a pretty weird world that we live in.

  3. I believe you have hit the nail on the head. What they are calling supplies from Samsung for the iPhone is actually global bal foundries.
    I do not believe the results. The regulators are giving them a pass. No write downs? Impossible! There will be a re-reporting down the road.

  4. Samsung is the village idiot of the tech world. It blew a fortune trying to be cool and promote itself as the natural successor to apple but all it got back for it was humiliation on the global stage and a now terminally sullied brand.

  5. Let’s also pull all US personnel — military, staff, advisors — out of South Korea (“The Republic of Korea”, or ROK) without delay ! The Korean conflict was 60 years ago. It is time to go home.

    There is no reason the US should spend a small fortune protecting South Korea when its people, its government, and its culture allow its chaebols to rip-off American ingenuity to immoral and even criminal degree, with the sole goal of enriching themselves at our expense.

    Let them deal with the North. It might help South Koreans better appreciate first-world standards of civilization — including business and legal standards — when they can no longer take their way of life for granted.

  6. So long as Samsung continues to focus on future growth and not on creating great products (emphasis on create, not copy) then they will continue in their current direction.

  7. This is old news. I saw a chart on one of the financial sites months ago that did a breakdown of the profitability of Samsung’s different divisions and the only one making a steady and healthy profit was semiconductors at roughly 20%, all the others were low single digits hovering above and below 0%.

  8. I expect Samsung will continue to live in the basement of the ‘smart’phone business. There’s always room for jello.

    Meanwhile, real quality tech users will increasingly ignore Samsung’s ‘smart’phones as a sad experiment worth ignoring. Android as a whole now has two black eyes thanks to the ongoing Stagefright and Stagefright 2 security nightmares.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.